How does Trump Twitter affect financial markets? JPMorgan Chase has a special index

category:Finance
 How does Trump Twitter affect financial markets? JPMorgan Chase has a special index


The word Volfefefe derives from a widely discussed tweet by Trump. On May 31, 2017, Trump posted a tweet in the middle of the night saying, Ignore the negative media coverage of covfefe. Trumps self-created word confused the market. He quickly deleted the tweet, but a few hours later, he again said, Who can guess the true meaning of covfefe? Enjoy it! u201d The heat of the word covfefe is pushed up again.

Statistics show that since Trump was elected in 2016, at least 10 tweets have been published every day on average. From 2018 to now, Trump has published about 4000 original tweets in the stock market trading time, of which 146 times triggered certain market fluctuations.

Financial markets are on pins and needles for the Internet addiction president.

The Bank of America Merrill Lynch report shows that when Trump tweets heavily, U.S. stocks tend to fall, or even have a positive relationship, that is, the more tweets they tweet, the worse the performance of U.S. stocks.

Savita Subramanian, chief securities analyst at Bank of America Merrill Lynch, pointed out in the report: Since 2016, when Trumps one-day push exceeds 35, the stock market returns are - 9 basis points; when the push is less than 5, the stock market returns can reach + 5 basis points.

If President Trump wants to keep U.S. stocks strong, the most direct and effective way is to send fewer tweets. Said Subonamania.

In addition to the direct impact on the financial market, Trump repeatedly shouted to the Federal Reserve on twitter, Tucao dollar is too strong, the Fed should cut interest rates at least 100 basis points and so on. In order to ensure the independence of the Federal Reserve, past US presidents have avoided making any comments on its policies. Trump wrote on Twitter: The only problem with our economy is the Federal Reserve. They have no sense of the market... The Federal Reserve is like a powerful golfer who doesnt know how to push a putter at all. Trump has repeatedly stressed that the Federal Reserve is the source of market volatility, and in fact, his tweets and statements have made things worse and worse. Former senior White House officials have repeatedly warned that Trumps Twitter has no positive impact on the U.S. economy. But from the current performance of Trump, he did not stop thinking about Twitter Governance. Source: First Financial Responsibility Editor: Wang Xiaowu_NF

In addition to the direct impact on the financial market, Trump repeatedly shouted to the Federal Reserve on twitter, Tucao dollar is too strong, the Fed should cut interest rates at least 100 basis points and so on. In order to ensure the independence of the Federal Reserve, past US presidents have avoided making any comments on its policies.

Trump wrote on Twitter: The only problem with our economy is the Federal Reserve. They have no sense of the market... The Federal Reserve is like a powerful golfer who doesnt know how to push a putter at all!

Trump has repeatedly stressed that the Federal Reserve is the source of market volatility. In fact, his tweets and statements have made things worse and worse. Former senior White House officials have repeatedly warned that Trumps Twitter has no positive impact on the U.S. economy. But from the current performance of Trump, he did not stop thinking about Twitter Governance.